Benefits of HRM Practices for Employer and Employee
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This article discusses the benefits of different HRM practices within an organisation for both the employer and employee. It explores the importance of hiring and training, conflict resolution, and employee relations in achieving business objectives.
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HUMAN RESOURCE MANAGEMENT
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Contents INTRODUCTION...........................................................................................................................1 TASK 1............................................................................................................................................1 P1Purpose and the functions of HRM, applicable to workforce planning and resourcing an organisation..................................................................................................................................1 P2 Strengths and weaknesses of different approaches to recruitment and selection..................4 TASK 2............................................................................................................................................6 P3 Benefits of different HRM practices within an organisation for both the employer and employee......................................................................................................................................6 P4 effectiveness of different HRM practices in terms of raising organisational profit and productivity..................................................................................................................................8 TASK 3..........................................................................................................................................10 P5 Importance of employee relations in respect to influencing HRM decision making...........10 P6 Key elements of employment legislation and the impact it has upon HRM decision making ....................................................................................................................................................12 TASK 4..........................................................................................................................................13 P7 Application of HRM practices in a work-related context, using specific examples............13 CONCLUSION..............................................................................................................................15 REFERENCES..............................................................................................................................16
INTRODUCTION Human resource management is determined as a term which is used for describing formal systemwithintheorganisation.HRMisastrategicapproachthatconsistofeffective managementthatcanprovidecompetitiveadvantagetothecompany.HumanResource Managementis commonlyknown as HR Departmentthat mainlyrecruit newand fresh employees and basically designed for enhancing the performance of the firm as well as organisation (Armstrong and Taylor, 2014). Organisation which is taken in this assignment is John Lewis Partnership which is a high-end of departmental stores and operates its business in United Kingdom. Company generally deals in clothing, watches and Jewellery, cosmetics, furnitures etc. Present report will focus on purpose and functions of Human Resource Management which is further applicable in workforce planning. In addition to this, effectiveness of the function of HRM is mentioned so that business objectives can be fulfilled. Apart from this, strengths and weaknesses of different approaches in recruitment and selection process is included in this assignment. There are many factors which can affect human resource management and in decision making and this can internal and external. Therefore, with the help of this report it can be identified. Lastly, application of Human Resource Management practice in a work-related context is being explained for better understanding. TASK 1 P1Purpose and the functions of HRM, applicable to workforce planning and resourcing an organisation Human resource management in an organisation plays a crucial role in providing benefits to the company. Generally, the responsibilities of HRM is categorised into three categories and these are staffing, employee compensation and benefits and defining the roles for accomplishing the task. Thus, it can be said that Human Resource Management in John Lewis Partnership work with the purpose of maximising the profitability and productivity of the firm. Therefore, it is mandatory that company have effective HRM department who can perform their action for better results (Bratton and Gold, 2017). Along with this, Human Resource Department make sure that every activity which is being performed within the organisation are done in and effective manner and any kind of problems are faced than appropriate solution can be evaluated. 1
In addition to this, HRM department provides training programmes to new as well as existing employees so that their skills and knowledge can be enhanced. This will definitely improve the performance of John Lewis Partnership as well as workers. In order to understand this is an better manner some of the functions and purpose of Human resource management is being explained below: Purpose of Human resource management: Structure of human resource management are different from business to business such as type, size, governing philosophies etc., but in general human resource management's functions revolves around the clusters of people. HRM in an organisation work with the purpose of dealing with the problems and issues that are mostly faced by employees and staff members. This majorly includes compensation, hiring, performance management, communication, training and development programmes (Purpose of Human Resource Management,2018). Main purpose of human resource management is to maintain internal customer management under which this department tries to make policies through which they are attract and recruit excellent quality workforce.Humanresourcedepartmentworkwiththemotiveofprovidingbenefitsto organisation so, in order to do the same they recruit and hire fresh candidates who are best fit for the job and are capable of taking major responsibility of completing a work. In order to maintain relationship between employees, HRM department plays a crucial role they make strategies by considering cultural sensitivity (Briscoe, Tarique and Schuler, 2012). Therefore,humanresourcemanagementisconcernwithimprovingthetalentsof individual workers and organisation as well. But this is not the only task which is performed by the HRM department they also provides training and development programmes according to the skills and knowledge acquired by them. Functions of Human resource management: Organisation is made of employee who perform their task for providing competitive advancement to company. It is all about hiring people, developing skills and knowledge & motivatingtheminpushingtheirlimitssothatorganisationobjectivescanbefulfilled. Generally, there are many many functions that are performed by them but majorly there are five functions and these are explained below: Recruitment and Selection:This is a process in which company captivate fresh candidates through screening and some selection criteria such as qualification, skills and 2
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knowledge acquired etc., as a result, it helps in attracting applicants who are knowledgeable and capable of performing the task in an effective manner. Therefore, before commencing this process, HRM department ofJohn Lewis Partnershipfirst go through the various divisions so as to know how many seats are vacant and what position are to be fulfilled. Thus, recruitment and selection process plays an important role in an organisation because it provides with the candidates who are eligible enough in doing activities according to the short and long terms goals. Orientation:This is a process and a fundamental step through which new employees are given information related to the post and organisation so that they can adjust themselves within the company. Orientation conducted byJohn Lewis Partnershipmajorly includes goal and objectives of the company so that set targets and goals can be achieved in a given period of time. Thus, this function is conducted by human resource management and it provides employees with clear insight about what kind of roles and responsibilities they should opt according to the skills and knowledge (Brewster and Hegewisch, 2017). Maintaining good working condition:It has been analysed that working environment is work as the first impression on the mind of employees as this assist them in making a insight whether they want to work in this company or not. Thus, it is the responsibility of HRM department to provide effective working conditions so that workers can freely perform their task. Therefore, if employees are provided with good working condition than it can work as a motivation tool and outcomes will be effective. Managing employee relations:Employees are considered as the pillars of any company so it is crucial that employees relation are maintained. This action is performed by the departmentofhumanresourcemanagement.Therefore,indoingthesameJohnLewis Partnership conduct activities so that employees of different departments can come in contact and make better relations for the betterment of the company. Traininganddevelopment:Thisisoneoftheindispensablefunctionwhichis performed by the department of human resource management. This is given in order to enhance and improve employees performance so that future task can be performed. Training and development programme conducted inJohn Lewis Partnership not only increase knowledge and skills of employees but it also enable an individual in performing activity accordingly. HRM contribution in the organisation 3
Human resource management play important role in the organisation as it helps in effective management of the employees working within the organisation with the motive to achieve the objective of company. In context of John Lewis Partnership it helps in improving the performance of company by authorizing the right employee of doing some exercise. Moreover helps in increasing the motivation of employees so that they focus on improving their skills and abilities. It contributes by developing the organisation structure as they are the one who has overview of the whole business. Also helps in improving productivity that is by providing proper off line and online training to employees. P2 Strengths and weaknesses of different approaches to recruitment and selection Recruitment is a procedure of finding candidates according to the potentiality so that vacant post can be fulfilled. As a result, it increase the efficiency of performing well in the market area. In relation with John Lewis Partnership, as it is a retail company so, firm with the help of recruitment process they are trying to hire candidate who eligible in doing their activity (Purpose of Human Resource Management.2018). Generally, recruitment process includes 5 components which assist in proper conduction of the same and these arerecruitment planning: This is the first step of recruitment process as in this positions which are vacant are analysed and includes factors like job specification, experience, qualification, skills and knowledge required etc., Therefore, in terms of John Lewis Partnershipthey are making appropriate planning so as to attract potential candidates from large numberof applicants.Strategy development:In this stage strategies related to recruitment are developed after analysing the job description and job specification. For example: considering geographical area and sources of recruitment etc., Searching:This majorly depends upon the requirement of post and position.For example: As John Lewis Partnership is a retail company so company must think of hiring individual who are good in sales (Chelladurai and Kerwin, 2017). Therefore, company is developing strategies accordingly.Screening:Under this stage, filtering of application is undertaken so that best out of large number of candidates can be selected. Company perform this through conducting telephonic and face-to-face interviews etc.,Evaluation & control:this the last stage under whichvarious factors are looked after and controlled so that selected candidates can be evaluated. Therefore, in order to conduct the process of recruitment and selection in a better manner it is important that all these steps are considered. Generally, recruitment is categorised into two 4
categories i.e. internal and external. Thus, to understand this in a better way both are explained along with its advantages and disadvantages. Internal recruitment:In this company tend to select employees within the organisation by recognising the performance of workers. This can be done through transfer, promotion, employee referrals etc., Strengths: According to company it is an easy tool of conducting the process of recruitment and selection process. John Lewis Partnership, is using this because it is less time consuming and cost effective as well. Company doesn't have to provide employees with training programmes because they are aware of the working environment and task they have to perform. Weaknesses: Although, internalrecruitmentprovides large number of benefitsbut it has some limitations as well. This process confined with existing employees which restrict the process of new and innovative ideas within the organisation. Other than this, if employees are not provided with appropriate position according to their skills and knowledge than it can create and raise conflicts between employees. External Recruitment:In this process of recruitment candidates are selected form outside sources and details bout the post are published in newspapers, advertisements or campus recruitment (Alfes and et. al., 2013). Strengths: This provides company with candidates who are fresh as a results, this will assist firm in implementing new and innovative ideas for executing action plan. Therefore, external recruitment work as the best source of hiring new and experienced aspirants. Weaknesses: As compared to internal recruitment it is time and cost consuming and even after getting suitable employees there is no guarantee that they can be effective for the organisation. New candidates can create chaos which can furthermore rise conflicts within working environment. Recruitment approaches: 5
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Social media:A company do recruitment process in order to hire employees who are skilled enough in performing their activities. Thus, in relation to John Lewis partnership they are using social media as their approach for attracting large number of applicants towardstheirorganisation.Ineverysocialmediasites,companyhaveposted advertisementsandprovidedthelinkaswell.Therefore,bygoingontothelink candidates can apply for the desired post easily. Websites:Unlike other companies, John Lewis Partnership has also its websites where they have provided information related to the post that are vacant. Thus, desirable applicant can go through the same and apply for the position which ever they want to or is according to the needs and wants. Selection approaches: Panel Interview:The process of selection is one the crucial factor because this provides with the information regarding the candidate who is suitable for the organisation. In relation with John Lewis partnership in the selection process they have a panel of 5 person who are experienced in different fields. For selecting the right person they take one to one interview which provides them with desirable outcomes. TASK 2 P3 Benefits of different HRM practices within an organisation for both the employer and employee It is defined as interact with predicting performance of firm which enhance practices of HRM including motivation, opportunity, workforce ability. It consists of practices which have only few workforce characteristics. Human resource managers take responsibility to protect employer and employee in an organisation. Both of them work for the firm so need to evaluated and trained on regular basis. There are various benefits for them which results in achieving objectives of business. Here John lewis partner has also used HRM practices in their company such as training and development, conflict resolution, employee relations. The benefits of HRM practices for employer and employee are described below: Benefits of HRM for employee Hiring and Training 6
It is most important responsibility for planning manpower. It meaning bringing right people in organisation. The hired employee should be provided with proper training and development to know about job profile, improve skills. Thus, through the help of this staff feel motivated and give their best to firm (Buller and McEvoy, 2012). This is necessary in every corporation to provide regular basis training to enhance skill, knowledge and behaviour. Performance Management Through training and development program, the performance of employees can easily be improved. The performance management is important to know about skills and knowledge and improve accordingly. It provide benefits to staff for achieving results. Thus, every firm measure performance of individual as well as manager. Developing good relations As employees are the asset of any firm so good relationship should be developed. The strong relationship with staff motivates them for doing work and achieving goals. Every manager should try best to built healthy cooperation with their working members. Thus, it also helps in less turnover and retention of staff which increase goodwill of firm at market place. Benefits of HRM for employer Information Source All the necessary and important information should be provided by manager to employer which can be compensations, leave of absence, benefits, assistance programs. The superior should be aware of all necessary data and information of business for providing help to other. If unaware then issue may arises which may hamper company's goals and objectives. Thus, information source is benefits for superior to know about each and every matters. Increase Productivity Every business work for sustainability, productivity and profitability. The employer should provide training and development program to improve product efficiency through help of employee. It is manager responsibility to check productivity on regular basis and increase as much as they can. The production should be high with minimum cost. Enhance Performance It is the responsibility of manager to increase performance of employer and employee by providingskillsanddevelopmentprogram.Theperformanceincreasesthroughtaking challenges, solving conflicts. Thus firm should focus on improving and enhancing skills of their 7
staffs.The motivated and high skilled worker always focus on improving and enhancing their performance at every where. P4 effectiveness of different HRM practices in terms of raising organisational profit and productivity HRM is effective in John Lewis Partner for productivity and profitability of business. The followingareaspectsintermsofeffectivenessofHRMfororganisationalprofitand productivity: Innovative and high performing employees The HRM of company promotes innovative and motivates staff for performing better. The firm focus on high performer to do their best and achieve maximum productivity and profit. It also leads them in promotion and recognition at workplace (Jiang and et. al., 2012). Thus, innovation can be done with the help of market research at John lewis Partner. Updating employees' skill to maintain productivity This is era of competition so accordingly company need to change and survive in market. In order to cope up John Lewis Partner should provide training and development to employees for updating and enhancing skills. The latest technology should be used for developing fast. If staff is of less potential then accordingly skill should be provided. Thus this helps in productivity and profitability with updated technology. Sharing and collaboration Johnlewispartnershouldcollaborativelyworkforachievementofprofitand productivity. Through the help of HRM firm can develop different methods for increment by collaboration and sharing process. Each and every staff of John Lewis Partner should be collaborated together for new ideas and creativity. Effective direction setting and execution The managers and leaders should play an role for setting up, goals, direction, and role. HRM helps John lewis partner for recruiting appropriate manager at right place. This lead firm to enhance productivity and profit. The skilled worker perform better than others with assist of direction and execution of given task. Effective rewards drive performance If employees are provided with rewards in monetary and non monetary terms then they are motivated to work for company (Renwick, Redman and Maguire, 2013). This also assist in 8
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improving staff performance and goodwill. The rewards includes bonus , incentives, perks and each of them for money. The staff should be personally and professionally skilled enough. Non monetary factors to improve employees John Lewis Partner managers, team worker and leaders give non monetary benefits in order to develop & increase excitement, energy, loyalty for staffs. It also includes feedback, praise, exposure, recognition, challenge and other opportunities. This motivate them for showing their skill towards achievement of productivity and profitability. Performance Factors: Thefirmfocusesontheperformanceoftheiremployee'sandonenhancingthe performance so that their employees can finish their assigned activities through effective and valuable input to the organization. The company encourages their employee to perform up to their capabilities and involve in achieving organizational objectives. Rewarding Factors: The organization uses an total reward statements (TRS) which helps their employees to have a clear picture of their complete package offered by the company. They encourage their employees through paid vacations, employee discounts, bonuses, by ensuring their safety and by giving them flexible working hours. Reward management: Reward management is the coined around the formulation of the policies that rewards the employees equitably and fairly as per per norms of the company. Rewards management in context of the company John Lewis Partnership revolves around the rendering the remuneration to the employees. The rewards management is providing the return of the contribution given by theemployeesintheorganisation.Ithelpsinmotivatingtheemployeestoachievethe organisational goal by accumulating their efforts. Flexibility In the context of the company John Lewis Partnership, the flexibility provide the capability to be adaptable of both the internal and external factors. The technological factors, socialfactors,changeineconomicpoliciesaresomefactorswhichaffectsthecompany. Flexibility provides the ways and the algorithms to deal with such changes in the both external and internal environment. Flexibility helps to enhance the competitiveness, it improves the 9
efficiency and the effectiveness of the organisational objectives, and helps in the growth of the company. Training and learning- Human resource management regards the training and learning as functions which are related with organisational activity. Their main aim is to enhance job performance of persons as well as groups at workplace. Training is related with developing specific skill to desired standard through instruction as well as practice. John Lewis Partnership provide training to its employees so that their skills ans knowledge can be improved and they can perform in proper manner. On the other hand, learning is process of acquiring new or changing existing, behaviours, values, skills etc. With the help of this person can learn something new or different. Reward and motivation-Reward is an effective way to motivate employees. John Lewis Partnership company give rewards to those employees which perform in a better manner. Through this other staff members try to give their better performance. Motivated employees are necessary for success of company. It can attain its objectives and make successful. Reward system is an effective way of motivation. Team and individual goals with effective communication John Lewis Partner helps in setting and attaining individual as well as team goals to achieve. The effective channel of communication should be used in business so that each and every employee understand actual scenario. HRM provides effective mode for communicating at firm. With assist of team member and group productivity and profitability can achieve. According to my point of view it can be concluded that whatever HRM practices John Lewisisusingisprovidingthemappropriateresults.Forinstance:throughsharingand collaboration it is making its employees capable enough in performing their task in a group without any kinds of problems. Along with this, training and development programme company is using is giving new as well as existing employees with an opportunity of enhancing their existing skills and knowledge. Other than this, John Lewis has maintained a transparency between its employees which is aiding them in having proper communication process. As a result, it is assisting them in meeting all goals and objectives in a speculated time frame. 10
TASK 3 P5 Importance of employee relations in respect to influencing HRM decision making Employees relation, is considered as an approach through which individual intend to maintain better relation with other individuals. This is a crucial element because employees spent most of the time at workplace and to gain better results an individual must have effective relationship with other persons. In present business world, it is being analysed that employee relations plays a crucial role when it comes to perform well at dynamic business situations. On the other hand, Employee relations refers to maintaining relations or connections among staff members so that they may easily perform well or hit their targets in specific time frame. Developing effective employee relations majorly can help both employees and employer to improve their proficiency. With the help of this, employees can stay motivated towards their work which will easily lead them to take charge by themselves to serve better to consumers with ease. Apart from this, it is being found that John Lewis Partnership's department as working in different areas, it became much necessary for this company to improve its HR department considering employee relations as a major part so that it may easily make effective decisions related to their performance level. In present context, there are a number of importance which is being carried out and these are mentioned below: ProfitMaximization:Withthehelpofstrongrelationshipsamongstaffand administrations, it is being found that employers may easily gain or improve contribution of themselves which may easily lead John Lewis Partnership's to attain business and success as well. In John Lewis Partnership, main objective is to provide better services to customers and get their retention for longer profitability. Therefore, good relationship among people helps in completing demands of consumers. EarlyAchievementofSetTargets:ManagementandemployeesofJohnlewis Partnership needs to develop effective relations (Purce, 2014). Here, superiors of JLP mainly required to interact with consumers so that they may easily get to know about their needs and requirement. Through this, it is being found that effective changes can easily be made right on time. On the other hand, early attainments can be seen by employers if they try to discuss with staff members on set objectives of business. According to the situation, it is required for 11
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employer of JLP to demand contribution of employees so that company can start attaining their productivity as well in achievement of desired targets. On the other hand, this process aids in completing a set target in short interval of time. Increase in Sales:Since employees have been considered as an asset for every single organisation, therefore, it is required for JLP to keep on making effective policies for its staff members so that they may perform well. It has also been analysed that, motivated employees mainly try to push or influence other staff members as well of the company so that they may perform well (Kim, 2012). In context to JLP, which is a departmental stores and consists with approximately 80 thousands of employees, good relations among them can easily put positive impact upon sales performance as they can support each other in completing demands of customers on time. This can also be helpful in enhancing both productivity and performance of John Lewis Partnership. P6 Key elements of employment legislation and the impact it has upon HRM decision making Employment legislation means all type of employment protection measures used by the government authorities to command and manage functioning of an business entity. While making policies for the organisation it is necessary for the chosen company John Lewis to have complete set offacts and information about all the employment legislation acts. It will help in smooth functioning of the business entity and to regulate all the business operations in legitimate way so that it will affect the employer, employee and the union directly. Different types of laws formulated by the government for an organisation are: Anti-discrimination Act, 1994 :This act was created by the government to manage that the employees of the business entities will not be differentiated regarding their age, gender, connections and other tactics. The employees of the John Lewis company always get appropriate care in the organisation from the top level management. It will help the company to retain their employees for longer time as compared to other business entities (Bos‐Nehles and et. al., 2013). The organisation should treat all their employees on an individual merit basis not because of their personal characteristics which are not at all relevant for the firm. In the company like John Lewis it is necessary for the human resource management to take a look on all their employees that they are harassing any other employees in any manner. It should be done on a quarterly basis so this will generate level of comfortability and job satisfaction among the employees. The workforce of the company always reflects the diversity of the budding market. 12
Health and Safety, 1974 :The main agenda behind this act is to provide health related safety to every individual in the organisation (Daley, 2012). It is the duty of the human resource department of John lewis company to provide a safe and healthy work environment to their employees. It will motivate the employees to perform the given task in productive and efficient manner. All the premises, self-employed, clients and general public under the company are also included in this act. According to this act it is the duty of all the employers in the firm to do whatever is practically logical. Equality Act, 2010 :This act was constituted by the government to remove all the gender inequalities which are increasing rapidly in most of the firms. It is the responsibility of the John Lewis company to have a equality culture in their organisation in which work is assigned to the employees according to their expertise and capabilities. The HR of John Lewis company also require to reward their staff members according to their performances and outcomes. The formulation of this act does not mean that the company is negative towards equality act but it is the measures that a company should take for functioning of the entity. So there are many employment protection legislation act which are examined by John Lewis company to create a positive work environment and to make the work force productive in the competitive market. TASK 4 P7 Applicationof HRM practices in a work-related context, using specific examples Human Resource is a management department within an organisation that deals with the hiring, administration and training of the staff members. It is an organisation that deals with the people and the issues related to people like compensation, hiring and recruitment, training and overall development of the staff members in the business entity. The main agenda of human resource is that employees must be motivated, developed, hired and retained.The job specification document used by the chosen organisation John Lewis to inform the people about the vacant position in the company. Job Specification Job Details: Post:Manager 13
Department:Marketing Job Purpose: *Develop new marketing plan for the organisation * Determine various market segments * Make changes in terms of increasing number of clients Roles and Responsibilities: * Strengthen the customer base by enhancing the firm's market * Enhance the market image of the firm * Motivate the employees to achieve the target Curriculum Vitae Name: Address: Phone Number : Email Address: Career Objectives: * To enhance my professional and academics skills in order with the opportunities related to career growth * To enhance my professional and academics skills in a stable and dynamic workplace Academic Qualifications: * Bachelor's in Marketing * MBA in Marketing Career Experience: * Three years of experience in Marketing Personal Skills: * Leadership 14
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* Market Knowledge * Good Communication Skills Place(Name) Interview Letter September 1, 2018 ABC XYS Street Anytown, CA, 12345 Dear applicant, This is to inform you that your application was received and we appreciate your skills and knowledge and on the basis of this you have been shortlisted as a manager for which you have applied. Therefore, you are invited for interview in the next couple of weeks. If you are selected than a call will be received from HR staff. Thank you for showing your interest for out organisation we appreciate this. Thanks and Regards. Senior Manager John Lewis Partnership CONCLUSION From the above report it has been evaluated that human resource management plays a crucial role in an organisation as they work with the purpose of recruitment and selection process. Along with this, they provide proper training and selection programmes for the betterment of the company. Moreover, in order to do the same firm perform recruitment and selection process which enable them in selecting candidates as per the skills and knowledge acquired. With the help of this report it has been analysed that there are the process of recruitment and selection is based on internal and external process but both have some 15
advantages and disadvantages like for getting innovative ideas external process of recruitment suits the best. Other than this benefits of different HRM practices is mentioned according to the employee and employer because all these HRM practices further assist company in making appropriate decision for the benefit of the organisation. Apart from this application of HRM practices in a work related context provides the criteria which are needed in order to apply for a job. 16
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